Mindspace REIT Acquires Rs 512 Crore Office Asset in Hyderabad's Financial District

 

In a significant move to strengthen its presence in one of India’s most promising commercial office markets, Mindspace Business Parks REIT has announced the acquisition of an office complex spread across 8 lakh square feet in Hyderabad's financial district for Rs 512 crore. The transaction marks the REIT’s first third-party asset acquisition outside its existing portfolio parks.

 

The commercial asset, formerly known as Q-City, has been acquired through Horizonview Properties Private Limited, an Asset Special Purpose Vehicle (SPV) of Mindspace REIT. Following the acquisition, the office campus will be rebranded as The Square, 110 Financial District.

 

The asset is located in the heart of Hyderabad’s financial district a commercial hotspot that has witnessed exponential demand from Global Capability Centres (GCCs), particularly in the tech and BFSI sectors. With over 350 GCCs now operational in the city and limited institutional-grade vacancy, Hyderabad has emerged as one of the fastest-growing commercial realestate destinations in the country.

 

This strategic purchase takes Mindspace REIT’s Hyderabad portfolio to over 16 million square feet in aggregate, reinforcing its leadership in the region. The REIT’s total portfolio now spans 37.9 million square feet across four major office markets in India, including Mumbai Region, Pune, Hyderabad, and Chennai. Of this, 30.8 million square feet is completed, 3.7 million square feet is under construction, and 3.4 million square feet is earmarked for future development.

 

In a regulatory filing on July 24, the company stated that it had acquired 100% equity shareholding in Mack Soft Tech Pvt Ltd, the owner of Q-City. Ramesh Nair, CEO and MD of Mindspace Business Parks REIT, called the acquisition a 'decisive milestone' in the REIT’s growth journey.

 

“This acquisition strengthens our foothold in Hyderabad, India’s hottest GCC hub”, Nair said. “With institutional-quality supply extremely tight and virtually no major investment-grade assets on the market, the timing is ideal. As Madhapur and HITEC City approach capacity, global occupiers are moving westward. This acquisition positions us to capture that demand”.

 

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He further added that the property was secured at an 11.6% discount to its independent valuation and offers a healthy 9.9% capitalization rate. “This reflects our disciplined capital deployment and commitment to creating long-term value for our unitholders. This is how we grow strategically, selectively, and with conviction”, he stated.

 

With this transaction, Mindspace REIT continues to reinforce its commitment to strategic expansion, long-term value creation, and capital efficiency, positioning itself as a frontrunner in India's institutional office space sector.